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Sunny Corporation has $ 1 , 0 0 0 , 0 0 0 in variable rate debt, with interest payments at SOFR plus 2 0

Sunny Corporation has $1,000,000 in variable rate debt, with interest payments at SOFR plus 20 bp, and interest payments due June 30 and December 31 of each year. On January 1,2023, it entered an 18-month receive variable/pay fixed interest rate swap, with the annual fixed rate set at 3.0 percent. On January 1,2023, SOFR is 1.6 percent. On June 30,2023, SOFR declines to 1.2 percent and causes the variable rate to be reset at that time. The swap qualifies for hedge accounting.
What is the balance for the investment in swap at January 1,2023?

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